offering memorandum - Ackerman & Co. in Atlanta, GA€¦ · 8,650 locations. The company had...
Transcript of offering memorandum - Ackerman & Co. in Atlanta, GA€¦ · 8,650 locations. The company had...
offering memorandum
Net Leased Walgreens204 Jonesboro road
mcdonough, ga 30253
Table of Contents
01 EXECUTIVE SUMMARY Investment Summary
Location and Demographics
Property Aerials
Property Overview
03 MARkET OVERVIEw McDonough, Georgia Detailed Demographics Competing Properties Sold Comparables
COnTACT
SEAn w. PATRICk, CCIM Vice President, Investment Sales 770.913.3946 [email protected]
ACkERMAn & CO. 10 Glenlake Parkway South Tower, Suite 1000 770.913.3900 | ackermanco.com
02 TEnAnT OVERVIEw Tenant Summary
Rent Roll
04 fInAnCIAL OVERVIEw Summary
Cash flow Model
This Offering Memorandum and any subsequent evaluation material you may be
provided (collectively known as the “Offering Memorandum”) is intended solely
for your limited use in considering whether to pursue negotiations to acquire
Walgreens (the “Property”) located at 204 Jonesboro Road in McDonough,
Georgia. The Property is being marketed for sale by Ackerman & Co. (“Broker”).
The Offering Memorandum contains brief, selected information pertaining to
the business and affairs of the Property and has been prepared by Broker. It
does not, however, purport to be all-inclusive or to contain all of the information
that a prospective purchaser may desire. Broker makes no representation or
warranty, express or implied, as to the accuracy or completeness of the Offering
Memorandum or any of its contents, and no legal liability is assumed to be
implied with respect thereto.
By acknowledgment of your receipt of the Offering Memorandum you agree that
the Offering Memorandum and its contents are confidential, that you will hold
and treat it in the strictest of confidence, that you will not directly or indirectly
disclose, or permit anyone else to disclose, the Offering Memorandum or its
contents to any other person, firm, or entity (including, without limitation, any
principal for whom you have been engaged), without prior written authorization
of Owner or Broker and that you will not use or permit to be used the Offering
Memorandum or its contents to be copied or used in any fashion or manner
detrimental to the interest of Owner. Photocopy or other duplication is strictly
prohibited.
THE OFFERING MEMORANDUM SHALL NOT BE DEEMED TO REPRESENT THAT
STATE OF AFFAIRS OF THE PROPERTY OR CONSTITUTE AN INDICATION THAT
THERE HAS BEEN NO CHANGE IN THE BUSINESS OR AFFAIRS OF THE PROPERTY
SINCE THE DATE OF PREPARATION OF THE OFFERING MEMORANDUM.
The information provided in the Offering Memorandum has been gathered from
sources that are deemed reliable, but the Broker does not warrant or represent
that the information is true or correct. Prospective offerors are advised to verify
information independently. The Offering Memorandum is not to be construed as
an offer or as any part of a contract to sell the property.
Furthermore, the inclusion or exclusion in the Offering Memorandum of
information relating to asbestos or any other hazardous, toxic or dangerous
chemical item, waste or substance (hereinafter collectively referred to as “Waste”)
relating to the Property shall in no way be construed as creating any warranties
or representations, expressed or implied by the Broker as to the existence or
nonexistence or nature of Waste in, under or on the Property, it may create
significant legal and/or economic obligations upon the Owner, lessee and/or
other holders of interest in the Property or a part thereof and you are hereby
advised to obtain professional assistance such as from a consultant, engineer
and/or attorney prior to taking an interest in the Property or a part thereof.
INFORMATION NOT WARRANTED
eXeCuTiVe SummarY investment Summary
Location and demographics
Property aerials
Property overview
01
Net-Leased Walgreens
501 Executive Summary Net-Leased Walgreens
204 Jonesboro RoadMcDonough, GA 30253
Ackerman & Co’s Retail Investment Sales group is pleased to exclusively present for sale a double net-leased Walgreens property located in McDonough, GA (Atlanta, GA MSA). The Walgreens property, originally constructed in 2001, includes a 15,120 SF building on approximately 1.92 acres. The offering provides stable cash flow, with just over 7 years of initial lease term remaining and eight 5-year options, from an investment-grade tenant; S&P: BBB/Stable rated tenant. This asset is fee simple and is being offered free and clear of debt.
The Walgreens store is located along Jonesboro Road, a heavily traveled
east/west corridor in McDonough, on a hard signalized intersection
with Kroger and Goodwill anchored shopping centers. The Walgreens
store features a drive-thru pharmacy and healthcare clinic.
InVESTMEnT PROfILE
Square footage: 15,120 SF
Acreage: 1.92 acres
Offering Price: $5,235,000
Price Per Square foot: $346.00
Debt Structure: Market (offered free & clear)
Lease Structure: NN (roof & structure)
Cap Rate: 6.60%
Lease Expiration: 12/31/2062
Rental Rate: $23.00 PSF
601 Executive Summary Net-Leased Walgreens
Tenant: Walgreens (NYSE: WAG S&P: BBB stable) is an investment grade tenant with more than
8,650 locations. The company had revenues exceeding $75 billion in 2014.
Signalized Hard Corner Location w/ Drive Thru: The subject Walgreens property is quality brick
construction with a drive-thru on a hard signalized intersection across from Kroger and Goodwill
anchored shopping centers.
Offered free and Clear of Debt: With limited single tenant product in the market, this is a benefit
for an investor looking for an all-cash deal or market debt with low current interest rates.
Low Rental Rate: The rent could be replaced if Walgreens does not exercise their options.
InVESTMEnT HIGHLIGHTS
Cartersville
McDonough
Covington
Oxford
Conyers
Loganville
Dacula
Sugar Hill
Buford
FloweryBranchCumming
Alpharetta
F U LTO N
D E K A L B
B A R T O WH A L L
Lawrenceville
DowntownAtlanta
CO B B
Kennesaw
Decatur
Duluth
Suwanee
G W I N N E T T
Stockbridge
Hartsfield Jackson Airport
Fayetteville
Braselton
113
41
400
675
78
Source: 2013 Georgia Department of Transportation
TRAffIC COUnTS 33,110 vehicles per day (COMbInED: JOnESbORO RD AnD MCDOnOUGH PkwY)
1 Mile 3 Miles 5 Miles
population 2013 7,165 38,464 71,767
Total households 2,646 13,674 24,961
average household income $54,077 $56,685 $64,536
DEMOGRAPHIC SUMMARY
75
75
McDonough CrossingShopping Center
Jonesboro Rd
McD
onou
gh P
kwy
Will
ow L
n
Mt C
armel Rd
Bridges Rd
Dai
ley
Mill
Rd
K
elly
Rd
701 Executive Summary Net-Leased Walgreens
LOCATIOn AnD DEMOGRAPHICS
204 JoNesboro roadmcdoNough, ga 30253
The subject property, a net-leased Walgreens, located on 204 Jonesboro Road in McDonough, GA, was built in 2001 and is in great physical condition. In 2013, total population within 5 miles was 71,767 with an average household income of $64,536.
204 JoNesboro roadmcdoNough, ga 30253
24,790 VPD 8,32
0 VPD
801 Executive Summary Net-Leased Walgreens
PROPERTY AERIAL - CLOSE UP
MCDOnOUGH P
kwY
JOnESbORO RD
8,32
0 VPD
24,790 VPD
901 Executive Summary Net-Leased Walgreens
PROPERTY AERIAL - SURROUnDInG RETAIL
Jonesboro rd
M
CDOnOUGH P
kwY
wesleyLakes
Subdivision
PembrookePark
SubdivisionCrossCreek
Subdivision
8,32
0 VPD
24,790 VPD
75
1001 Executive Summary Net-Leased Walgreens
PROPERTY AERIAL - MAJOR SUbDIVISIOnS
M
CDO
nOU
GH P
kw
Y
JOnESbORO RD
1101 Executive Summary Net-Leased Walgreens
PROPERTY OVERVIEw
Address: 204 Jonesboro Road, McDonough, GA 30253
Parcel ID: 091-01-024-021
County: Henry County - City of McDonough, GA
Metro Market: Atlanta MSA
Zoning: C3
building Size: 15,120 SF
Land Area: 1.92 acres
Year built: 2001
Construction: Concrete block and brick
Parking: 35 parking spaces
Signage: Large dedicated pylon at Jonesboro Road
Access: There are (2) two points of ingress/egress via Jonesboro Road and McDonough Highway
Store number: 6208
Drive-Thru: Yes
Pharmacy: Yes
Photo: Yes
Health Clinic: No
Store Hours :8:00 AM - 10:00 PM
Pharmacy Hours: M-F, 9:00 AM - 9:00 PMSat, 9:00 AM - 6:00 PMSun, 10:00 AM - 6:00 PM
204 Jonesboro RoadMcDonough, GA 30253
TenanT oVerView Tenant Summary rent roll
02
Net-Leased Walgreens
SiZeone-Story Building
SQuare fooTage15,120
LeaSe eXPiraTion2062
02 Tenant Overview 13Net-Leased Walgreens
wALGREEnS
Founded in 1901, Walgreens is the largest drug retailing chain in the United States currently operates 8,678 drugstore chains across the United States and Puerto Rico. In addition, Walgreens completed their purchase in 3,000+ store European retail pharmacy giant Alliance Boots to expand their presence internationally. Walgreens is a national leader in providing prescription and non-prescription drugs and household consumer products. With an S&P credit rating of BBB, Walgreens is consistently regarded as one of the most financially sound organizations in the United States. Innovations such as store layout remodeling and in-store health centers have allowed Walgreens to consistently outperform its competitors with regard to earnings per share, revenue growth, net income growth, and cash flow from operations. In 2013, Walgreens posted its unprecedented 39th straight year of record sales and earnings.
Walgreen Company (NYSE: WAG) S&P Rating: BBB/stableHeadquarters: Deerfield, IL USA Store Locations: 8,678 as of January 31, 2014Year Founded: 1901Employees: 244,000Market Capitalization: $59.31B (8/20/2014)Net Sales: $72.217B (Fiscal 2013)
www.walgreens.com
TEnAnT SUMMARY
02 Tenant Overview 14Net-Leased Walgreens
REnT ROLL – as of August 2014
SUITE TEnAnT START DATE
EXPIRATIOn DATE
RSf AnnUAL REnT
MOnTHLY REnT
PSfREnT
REnEwAL InCREASE
nOTES
1 walgreens 1/1/2002 12/31/2021 15,120 $347,760 $28,980 $23.00 none
Tenant retains Eight (8) x five (5) year options after the initial Twenty (20) year lease term. 60 year lease.
markeT oVerView mcdonough, georgia demographics Competing Properties Sold Comparables
03
Net-Leased Walgreens
McDonough Courthouse
03 Market Overview 16Net-Leased Walgreens
MCDOnOUGH, GEORGIA
The City of McDonough is located just 20 minutes south of downtown Atlanta. The county seat of Henry County and part of the Atlanta MSA, the City of McDonough has blossomed as a bedroom community to Atlanta and hub for industrial and logistics on the south side of the MSA. The community has grown by more than 87 % over the last 10 years.
The strong school system has attracted residential developers and in turn has been followed by national retailers wanting to locate in this market. The market has three interchanges along the I-75 interstate; Jonesboro Road is one of them.
TOP TEn CORPORATE EMPLOYERS: METRO ATLANTA
Company EmploymentDelta Airlines 22,257
AT&T 21,915
Emory University and Emory Healthcare 21,000
Cox Enterprises 13,583
United Parcel Service (UPS) 10,745
WellStar Health System 10,112
SunTrust Banks 7,700
Lockheed Martin Aeronautics 7,531
IBM Corporation 7,500
Georgia Institute of Technology 7,342
Company EmploymEnt loCation
Henry Medical Center 1,561 Henry County
Federal Aviation Administration 612 Henry County
Briggs & Stratton Corporation 567 City of McDonough
Georgia Power Customer Care 563 Henry County
Southern States, LLC 350 City of McDonough
Luxottica Retail Group 302 City of McDonough
Toys “R” Us 300 City of McDonough
Georgia Crown Distributing Co. 280 City of McDonough
Carter’s Inc 216 City of McDonough
Home Depot Distribution Center 200 City of McDonough
TOP TEn EMPLOYERS:
CITY OF MCDONOUGH & HENRY COUNTY
03 Market Overview 17Net-Leased Walgreens
MCDOnOUGH, GA DEMOGRAPHICS
Sources: Claritas, Market + Main, Inc., U.S. Census Bureau
DETAILED DEMOGRAPHICS 1 MILE 3 MILES 5 MILES
2013 Population 7,165 38,464 71,7672018 Projected Population 7,606 41,170 77,2632010 Census Population 6,934 36,761 68,3602000 Census Population 4,307 21,430 36,452Growth 2000 - 2013 64.32% 76.06% 92.51%Growth 2013 - 2018 6.15% 7.15% 7.66%2013 Median Age 31.4 33.7 35.32013 Households 2,646 13,674 24,9612018 Projected Households 2,792 14,680 26,8142010 Census Households 2,568 13,028 23,7882000 Census Households 1,561 7,513 12,683Growth 2000 - 2010 64.53% 73.40% 87.56%Growth 2010 - 2013 3.03% 4.96% 4.93%Growth 2013 - 2018 5.55% 7.36% 7.43%2013 Average Household Size 2.71 2.75 2.842013 Housing Units 2,646 13,674 24,9612013 Owner Occupied Units 48.49% 62.43% 71.02%2013 Renter Occupied Units 51.47% 37.57% 28.97%
75
75
155
155
20
20
81
23
23
C
onyers Rd
Jonesboro Rd
204 JoNsboro roadmcdoNough, ga 30253
riTe aid961 georgia 20mcdoNough, ga 30253
2.6 miles
WalMarT pharMacy135 WiLLoW LNmcdoNough, ga 30253
2.9 miles
Walgreens896 hWy 81 emcdoNough, ga 30252
3.2 milessaM’s club pharMacy1765 JoNesboro rdmcdoNough, ga 30253
3.5 miles
cvs pharMacy 2 N Zack hiNtoN PkWymcdoNough, ga 30253
2.1 miles
publix pharMacy920 hWy 81 emcdoNough, ga 30252
3.3 miles
Moye’s pharMacy62 keys ferry stmcdoNough, ga 30253
1.7 milesKroger pharMacy301 JoNesboro rdmcdoNough, ga 302530.4 miles
TargeT pharMacy1850 JoNesboro rdmcdoNough, ga 30235
3.5 miles
03 Market Overview 18Net-Leased Walgreens
COMPETInG PROPERTIES wITHIn 3 MILES
3.5-
MILE
RAD
IUS
1 2
3
2 31
1762 Mars Hill RdAcworth, GA
total sf 15,120
sales Price $5,020,000 ($332 Psf)
built 2002
sold 1.28.13
Parking 70surface spaces
Land 2.34 acres
1556 Lawrenceville HwyLawrenceville, GA
total sf 15,387
sales Price $4,700,000 ($305.45 Psf)
built 2001
sold 6.28.13
Parking 60surface spaces
Land 1.74 acres
5811 Prosperity Church RdCharlotte, nC
total sf 13,824
sales Price $3,988,500 ($288.52 Psf)
built 2004
sold 1.10.14
Parking 54 surface spaces
Land 1.45 acres
03 Market Overview 19Net-Leased Walgreens
SOLD COMPARAbLES
finanCiaL oVerView Summary
Cash flow model
04
Net-Leased Walgreens
04 Financial Overview 21Net-Leased Walgreens
Sales Price $5,235,000
Square Feet 15,120
Price Per SF $346
Cap Rate 6.60%
FinancingProperty is offered free and
clear of existing debt
fInAnCIAL OVERVIEw
Address 204 Jonesboro Road,
McDonough, GA
Propety Type Single-Tenant Retail
Year Built 2001
Parcel Size 1.92 Acres
Type of Ownership Fee Simple
bUILDInG InfORMATIOn
Commencement Date 1/1/2002
End Date 12/31/2062
Initial Lease Term 20 Years
Annual Rent $347,760
Rent Escalations (Current Term) None
Rent Per Month $28,980
Lease Type NN
Options Eight (8) x Five (5) Year
Option Rental Increases None
Landlord Responsibilities Roof & Structure
LEASE DETAILS
04 Financial Overview 22Net-Leased Walgreens
CASH fLOw MODEL – Year beginning 1.1.2015
CASH fLOw PROJECTIOnS YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7
Gross Rental Income $347,760 $347,760 $347,760 $347,760 $347,760 $347,760 $347,760
Expenses ($0.15/sf) $2,268 $2,268 $2,268 $2,268 $2,268 $2,268 $2,268
net Operating Income $345,492 $345,492 $345,492 $345,492 $345,492 $345,492 $345,492
Offering Price (6.60% cap) $5,235,000
© 2014 ackerman & co. all rights reserved.
fOR MORE InfORMATIOn, PLEASE COnTACT:
SEAn w. PATRICk, CCIM Vice President, Investment Sales 770.913.3946 | [email protected]